Golden Energy Mines raises Rp2.2t through IPO
Friday, November 18 2011 - 02:22 AM WIB
GEMS, sold 15 percent, or Rp 882.35 million, of its equity to the public at Rp 2,500 per share.
GEMS shares then closed 9 percent higher at Rp 2725. During the listing, Golden Energy Mines? market capitalization stood at Rp 14.7 trillion.
Golden Energy Mines plans to use funds raised from the IPO as working capital, infrastructure development expenditure and capital goods expenditure.
PT Sinarmas Sekuritas, which served as underwriter for the IPO, reported that infrastructure company GMR Singapore, a part of GMR Infrastructure and a subsidiary of India-based GMR Energy Ltd, purchased about 80 percent of the total shares offered to the public.
GEMS president director Lay Krisnan Cahya said that his company would offer more shares amounting to 18 percent ownership to GMR Singapore in a private placement scheme.
?We will carry out the private placement in one or two days, leading to the company (GMR) having a total ownership of 30 percent,? he said.
Krisnan said that GMR would help GEMS to improve its infrastructure leading to an increase in coal production.
?For example, we plan to upgrade our harbor. At the moment, the harbor is only able to accommodate five million tons of coal but we will upgrade its capacity to between 14 million tons and 16 million tonnes,? he said.
Krisnan said that GEMS aimed to reach 5 to 6 million tonnes of coal production by the end of the year.
?At this point, we have achieved about 4 million tonnes. We expect to produce 8 to 10 million tonnes in 2012,? he said.
GEMS currently owns and operates three producing coal mines, these are PT Borneo Indobara in South Kalimantan, PT Kuansing Inti Makmur in Jambi and PT Trisula Kencana Sakti in Central Kalimantan.
GEMS is a subsidiary of publicly-listed PT Dian Swastatika Sentosa, which itself is a subsidiary of the Sinarmas Group. (*)